v3.25.2
Decommissioning and other provisions
12 Months Ended
Dec. 31, 2024
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Decommissioning and Other Provisions
$ million
Decommissioning
and restoration
LegalOnerous contractsEnvironmentalRedundancyOtherTotal
At January 1, 2024
Current1,2965082243183671,3284,041
Non-current18,1571,5488806381231,18522,531
19,4532,0561,1049564902,51326,572
Additions6292611841251,2586653,122
Amounts charged against provisions(1,034)(409)(227)(148)(354)(316)(2,488)
Accretion expense83076351439967
Disposals and liabilities classified as held for sale(3,115)(3)211(3,105)
Remeasurements and other movements1,994(161)(33)(39)(241)(505)1,015
Currency translation differences(273)(2)(1)(22)(37)(52)(387)
(969)(235)(42)(73)631(188)(876)
At December 31, 2024
Current1,3564572382679321,2194,469
Non-current17,1281,3648246161891,10621,227
18,4841,8211,0628831,1212,32525,696
At January 1, 2023
Current8562242773211711,0612,910
Non-current19,4291,1771,2077301531,14923,845
20,2851,4011,4841,0513242,21026,755
Additions617853262084248062,934
Amounts charged against provisions(777)(195)(345)(233)(154)(203)(1,907)
Accretion expense64321241349714
Disposals and liabilities classified as held for sale(60)(1)(16)(1)(1)(79)
Remeasurements and other movements(1,499)(24)(83)(74)(113)(321)(2,114)
Currency translation differences2441(2)7613269
(832)655(380)(95)166303(183)
At December 31, 2023
Current 1,2965082243183671,3284,041
Non-current18,1571,5488806381231,18522,531
19,4532,0561,1049564902,51326,572
The amount and timing of settlement in respect of these provisions are uncertain and dependent on various factors that are not always within management's control. Reviews of estimated future decommissioning and restoration costs and the discount rate applied are carried out regularly. The discount rate applied at December 31, 2024, was 4.5% (2023: 4.5%).
In 2024, there was a decrease of $3,105 million in provisions due to disposals and liabilities classified as held for sale. Of this total $3,053 million relate to liabilities classified as held for sale (see Note 19).
An increase of 0.5% or a decrease of 0.5% in the discount rate could result in a decrease of $0.9 billion (2023: $0.9 billion) or an increase of $1.0 billion (2023: $1.0 billion) in decommissioning and restoration provisions, respectively. Where applicable, the associated increase in the carrying amount of the related asset would be tested for impairment.
Other provisions at December 31, 2024, include amounts recognised in respect of employee benefits.
The decommissioning and restoration provision at December 31, 2024, is expected to be utilised within:
$ million
Dec 31, 2024
Between 1 to 5 years5,127
Between 6 to 10 years3,486
11 years and later9,871
Total18,484